First China Corporate Bond UCITS Fund launched in China

The Central Bank of Ireland has approved the first undertaking for collective investment transferable securities (UCITS) to focus on the Chinese corporate bonds. The partnership of Ping An Asset Management Co., Ltd. (PAAMC) with Queensland Investment Corporation (QIC) is to jointly launch the QIC-Ping An China Corporate Bond Fund comes under the same umbrella.

QIC-Ping An China Corporate Bond Fund’s key asset objective is to deliver revenues to the customer above the benchmark performance delivered by FTSE Chinese (Onshore CNY) Broad Bond Index Interbank, China. The fund will be allotted offshore and will be denominated in renminbi (RMB) providing institutions opportunities to invest in China’s bond market with ease, productivity and taking into hand the controllable risks.

Alex Ren, Ping An Group President, said that the China fund is devoted to generating strong returns for investors following a global fixed income and currency management policy. This fund will provide a link to investment cooperation between Chinese and other foreign capital markets. The fund’s objective is to conduct effective risk evading through cross market investments and surge incomes through offshore resourceful investments and support the international cooperation and mutual recognition.

The fund will give global investors an entree to bond market in China growing the impact of Chinese bonds and encouraging the internationalization of RMB in due course.

Queensland Deputy Premier and Treasurer Jackie Trad and CEO of QIC Damien Frawley were present at the inauguration ceremony of the fund with Ping An Group President Alex Ren and Chairman of PAAMC Jack Wan.